Ecommerce has truly changed the way we do shopping. Have you ever imagined that you shop for clothes, shoes, accessories, bags, and even gadgets while you are just at home? Ecommerce offers convenience unlike any other methods for shopping.
On the side of ecommerce store owners, being engaged in online selling enables them to reach more customers, to cover more territory, and to save them from the expenses of being on physical stores. Ecommerce is indeed mutually beneficial for both online shopper and online seller.
- Read: Precautions to Take For Securing WooCommerce Store
- Read: What You Need for a Successful Ecommerce Store
However, ecommerce is not without risks. Fraud is one of the issues that taint such a brilliant sales platform. The Association of Certified Fraud Examiners estimate that almost fifty percent of small businesses have become victims to fraud at one point in time. Losses are averaged at $114,000.
During the 2nd Quarter of 2016, PYMNTS.com’s The Global Fraud Attack Index listed the top ecommerce industries affected by fraud. Digital Goods comes in as the top industry with the most fraud attacks at a 304% increase from last quarter, 95% increase in attacks for Luxury Goods stores, and 37% increase in attacks for online clothing business.
Fraud is a real pain in the neck for ecommerce. So how can it be dealt with? How really can you protect your ecommerce store from fraud?
How is online fraud done?
It is best to first know how fraudsters are doing their deeds. While there are lots of ways in which fraud can be done, there are two main category of fraud:
1# Identity Theft
Identity theft refers to the act of using someone else usernames, passwords, credit card or debit card number, and other personally-identifiable information so that they can make transactions using said information.
2# Account takeover
Account takeover refers to when fraudsters hack into your database (usually via phishing schemes). After being able to take control of the account, passwords will be changed, not only causing so much trouble logging in, but the perpetrators will also be able to freely make evil deeds.
Tips on how you can protect your ecommerce store from fraud
Although there are risks involved in ecommerce, you should not worry so much because there are ways to protect your stores from fraud. It is worth noting that actual stores aren’t free from risks as well. It is all up to the steps you take in keeping your ecommerce store protected. Just follow bellow recommendations and you will help keep your online shop safe and protected:
1# Comply with PCI
The Payment Card Industry Security Standards Council (PCI SSC) has set standards in keeping your online stores protected. Take note that PCI compliance is required and not merely optional, there are consequences for non-compliance.
2# Audit your transactions, as well as your bank accounts
Look for inconsistencies within your transactions, such as different billing and shipping information. Also ensure that you reconcile your sales with the details of the funding report by the bank.
Finally, track customer IP Addresses so that you can single out fraudsters from usual users. Fraudsters usually use IP from other countries in hope of anonymity.
3# Set limits
It is recommended that you set limits on the number and amount that can be transacted by a single user. This will ensure that when the worst happens, you won’t feel that much problem.
4# Utilize AVS and CVV
Address Verification Systems or AVS is a tool that helps detect fraud by comparing the address on the credit card, and that recorded on the credit card company.
The CVV is the three-or-four digits found at the back of the card. It’s an extra tool that keeps fraudsters away. Actual card owners should be able to input the right CVV.
5# Update your platforms regularly
For the highest level of security, ensure that you are using the latest operating systems. Updates include new security definitions, so never dismiss updates. If you have chosen the best web hosting for ecommerce sites, you don’t need to worry as these hosting providers usually offer automatic backups, and Level 1 PCI Compliant hosting. On the other hand, it’s recommended to install an EV SSL certificate for ecommerce stores for customer assurance and authority. Applying for an EV SSL takes some time, but it’s definitely worth the effort. A web-trust certificate provider discovered that 84% of website visitors said they would abandon a purchase if they knew the data was going to be sent over an insecure connection.
6# Consider using PayPal
Using PayPal is one of the ways that ecommerce store owners are using to keep their online stores safe. PayPal believes that online shopping should be fun and free of fraud, so it employs ways to keep it as such.
Passwords in PayPal, like for any other systems and websites that need account log-ins, should be extra though to ensure that they won’t be cracked easily!
Protected ecommerce stores for all!
By following above tips, you did a good job to protect your ecommerce store from the fraudsters. A protected ecommerce store is beneficial for both store owner and shopper. Ecommerce store owners will be away from obligations that fraud brings, while shoppers will be able to do their shopping without any worries. Here are more tips on what you need for a successful ecommerce store! If you’re using WooCommerce for your ecommerce website, Lucy has a great guide on securing your WooCommerce site, too.
Online shopping should really be this way: convenient and risk-free. With the tips we gave you, you are one step closer to achieving this. Oh what a great online shopping experience that would be!